Interesting article about Oil

wanghong

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& L# s' `7 }, P8 H; JBelow is an Interesting article I found, which says that.....Do not
- B' ?' M, P; r1 uexpect much from Crude Oil producers and future is not with the
" ?+ I7 W# y' F8 a! ucompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
! x- h4 G2 z4 |0 x, Q+ X4 Lcrude prices improves. This implies also to good names such as Shell,
3 G6 c- b; `2 j! c4 x$ KEXXON, BG, BP, Cheveron ....xyz.. oils

; J, z( W  A: e0 P% QRecently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
+ ^8 y/ x. R, `" G& cA year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.


There are several reasons the price of oil is decreasing in the face
5 i8 l) O" ~% _( P/ W+ Hof so much news. These reasons are:
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2 Y% f# m+ }  P4 O" r. B1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
0 V; O7 S2 G; d! EArabia.


2. New natural gas has been found in Pennsylvania and West Virginia.
+ [) Q2 Q0 `" [4 }3 qThis is the largest find in North America.
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7 H  c6 }) e1 o7 X3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
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  U* h0 f* Q& `% K- |8 R: N- X4. Production of bio-fuels is beginning to reach critical mass. Bio
" J# ]6 F+ j/ f: U$ Y( Bfuel is being produced from many plants and algae. The production
  ~+ M, y6 T& E( ?' O2 Ppotential per acre in some cases is astounding. Many countries are
# m6 L/ [6 \7 {: G( |' sracing to produce bio fuels.

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1 i7 l% X8 i" ^5 K, h5. Virtually every restaurant in the US and all food processing plants
. Q( g# e3 d7 }! vare now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.


6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
) V+ T( m: @+ t4 F: T! |: Hexpected to be built in the future. Much of the energy they produce
will replace oil.
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7. Every company in any form of transportaion business is replacing
, Q1 @* {6 }, W- m9 Q+ Yolder equipment such as trucks, airplanes, train engines, ships, etc.
+ E4 U9 Q8 G) x9 w/ f# xwith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
equipment.

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Airlines are flying airplanes with bio-fuel. They are finding the bio-
  X4 O6 _3 R1 K  Vfuel is cleaner and performs better than jet fuel.
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8. Cities and counties throughout the US are selling the rights to
+ q. [1 x' {. G, u6 f0 Q7 K% M, Lcapture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
+ x/ v2 N6 A% r5 D% poil.
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- N! q) O8 L, a: M5 G: j4 E
2 \$ I& R, s* p, j" r% B9. Coal is being transformed into a clean burning liquid fuel. The CO2
3 `/ B9 {, Z2 @, N% Mproduced as a byproduct is sold to oil companies for injection into
0 ]9 X$ I* p' s7 U5 Goil wells.

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10. Solar, wind and ocean energy is displacing oil as an energy
. r6 F) o  x8 ^4 H6 F1 Rsource. Three new wind turbines are being erected every day in the US.
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Each of the above by itself will not make a large difference in the
$ G0 ~! s& x( Q5 c5 Tprice of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
( I9 {6 ?3 S9 H2 y" ]to control oil prices.
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With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only